Omni Health Inc.

Focus: WeakOmni Health bought and began operating Malecon Pharmacy, Inc. in June 2016. The Florida pharmacy has been in operation since 1974. It also manufactures, sells, and distributes an anti-aging cream. Omni Health is a subsidiary of LX Retail Group, Inc.

Omni began reformulating its product to include cannabidiol (CBD) and begin its FDA registration for topical pain analgesic.

The company puts out limited news. In late December 20127, it said it is in the final stages of development of non-prescription CBD analgesic creams and ointments with fast absorption properties it would rapidly deploy to the market. They are to be distributed exclusively to doctors’ offices, clinics, and hospitals to ensure appropriate support and usage. They expect to introduce it to North American in Q3 2018. Omni projects generating a recurring annual revenue over $7 million.

Size:Market Cap: $4.2 million
Employees: 26

Markets:Florida. It has a distribution deal in Europe to sell its anti-aging product.

Operations:NeutralDistribution: N/A
Direct sales: The sells through its single pharmacy in Florida.
Store networks: In December 2017, Omni entered into a distribution agreement with MediCann, a European distributor, for distribution of its anti-aging products in 22 countries in Europe starting March 2018. Europe has a population of 740 million people and good demand for anti-aging and CBD products.

Financings:No news. Not knowing its financial situation is a serious problem for investors.

Risks:HighThe risks of investing in any cannabis company are very high given the newness of the market. The risks of investing in this company are extremely high, since it does not offer regular financial reports nor much of any news about its progress.

Recommendation: WeakIn November 2016, mCig, a diversified cannabis company in Nevada, bought 17 million shares of Omni Health at $0.02 for $100,000. This was a passive investment. So far, they have lost a lot on this deal.

In terms of reporting financials and news, this company is the least responsible of any we have studied to date. It does not send regular financial statements nor much news. After hitting a high of $0.04 last December 2017, it has trended steadily down since and is at $0.004 now. Only investors with extremely high risk tolerance, and a strong knowledge and reliable source of the company’s news, should consider owning this stock.

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Risk of Prosecution for Marijuana-Related Companies. If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. The Department of Treasury recently issued guidance noting: “[T]he Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”